That's right: the long-in-development action-RPG game that was announced as coming to Xbox One and Windows 10 PCs for 2017 is no longer planned for release. Microsoft confirmed as much to IGN on Monday in a statement:

"After careful deliberation, Microsoft Studios has come to the decision to end production for 'Scalebound.' We're working hard to deliver an amazing lineup of games to our fans this year, including 'Halo Wars 2,' 'Crackdown 3,' 'State of Decay 2,' 'Sea of Thieves' and other great experiences."

The game was an entirely new series, created in partnership between veteran Japanese game studio Platinum Games and Microsoft's game publishing arm, Microsoft Studios. It was a third-person action game where you played as a stylish hero with a dragon partner. It was originally announced back in 2014 with a tongue-in-cheek trailer, and had likely been in development for some time before that.

"Scalebound" was shown as recently as last year, during the annual game industry trade show E3 in June:

It's not clear why the game is cancelled — likely not from lacking anticipation. The latest trailer for the game (above) looks great! It's got dragons and silly dialog and monsters that make dragons look tiny.